Newell Rubbermaid Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Newell Rubbermaid (NYSE:NWL) will unveil its latest earnings on Friday, October 26, 2012. Newell Rubbermaid markets consumer and commercial products, including housewares, hardware, and home furnishings.

Newell Rubbermaid Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 44 cents per share, a decline of 2.2% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 45 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 44 cents during the last month. Analysts are projecting profit to rise by 5.7% compared to last year’s $1.68.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 2 cents, reporting net income of 47 cents per share against a mean estimate of profit of 45 cents per share.

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A Look Back: In the second quarter, profit fell 23.8% to $111.8 million (38 cents a share) from $146.7 million (49 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 3.6% to $1.52 billion from $1.57 billion.

Stock Price Performance: Between August 24, 2012 and October 22, 2012, the stock price had risen $2.81 (15.9%), from $17.65 to $20.46. The stock price saw one of its best stretches over the last year between August 27, 2012 and September 7, 2012, when shares rose for nine straight days, increasing 8.5% (+$1.47) over that span. It saw one of its worst periods between November 14, 2011 and November 25, 2011 when shares fell for nine straight days, dropping 12.1% (-$1.97) over that span.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.09 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 1.33 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 41.7% to $2.45 billion while assets rose 16% to $2.66 billion.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 4.2% in the third quarter of the last fiscal year, 1.8% in the fourth quarter of the last fiscal year and 2.3%in the first quarter before dropping in the second quarter.

Analyst Ratings: With nine analysts rating the stock a buy, none rating it a sell and two rating the stock a hold, there are indications of a bullish stance by analysts.

Wall St. Revenue Expectations: Analysts predict a decline of 0.6% in revenue from the year-earlier quarter to $1.54 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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